"Leggett & Platt held the title of Dividend King with 52 consecutive years of increases, indicating a strong ability to generate free cash flow to reward shareholders without overextending."
"The board responded to a 10% year-over-year sales decline and a drop in adjusted EPS by slashing the quarterly dividend 89%, from $0.46 to $0.05 per share."
"High yields can mask underlying issues when earnings weaken, as seen with Leggett's payout ratio climbing above 128% before the dividend cut."
Dividend investors are experiencing pressure on income streams due to inflation and demand issues, leading to dividend cuts from established companies. In 2024, Walgreens Boots Alliance, Leggett & Platt, and 3M reduced their dividends. Leggett & Platt, a former Dividend King with 52 years of increases, agreed to be acquired by Somnigroup International after reporting a significant drop in sales and earnings. The company's payout ratio exceeded 128%, prompting the board to cut the dividend by 89% to preserve capital and protect the balance sheet.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]